Chevy shares rise after Roth MKM Analysts raise rating
2023.03.10 13:03
Chevy shares rise after Roth MKM Analysts raise rating
By Kristina Sobol
Budrigannews.com – On Chewy (NYSE:), Roth MKM initiated a Buy rating with a $52 price target. shares in a Friday note.
In a research memo, analysts stated that Chewy, an online retailer of pet supplies, is “becoming the next beast in e-commerce.”
The analysts stated, “As we continue to navigate the consumer complex, the building strength of Chewy’s core business stands out, particularly in light of the limited demand “giveback” period faced by most other eCommerce players.”
Chewy’s self-funded growth, highly predictable revenue streams, and ongoing secular opportunity in the expanding $60 billion+ core pet food and consumables category all contribute to the company’s positive stock rating.
“The most underappreciated aspect of the CHWY investment thesis, in our opinion, is its extremely constrained and highly predictable revenue trajectory, which enables it to improve profitability within its core $7-8 billion autoship business. In turn, this enables CHWY to invest further in adjacencies with higher margins, which should support the profitability mechanism and consolidate customer spending across the pet category,” they added.
“After two quarters of slight declines, net customer adds improved sequentially into the third quarter.” As active customer growth rebounds through 2023, we see an inflection and catalyst in the near future.”
More:
Comerica entered priority list-City Analytics
Boeing opens a company in India
Tesla cooperates with Asian companies to solve problems with batteries
